Application of game theory in accounting analysis and decision-making Case study of audit failure based on the game conflict model

Abstract

The occurrence of audit failure has aroused public doubts about the audit industry, which not only hinders the development of the
audited units, but also has a negative impact on the reputation of accounting firms and the development of the audit industry. In view of this
phenomenon, this paper, based on the reference of relevant literature and related theoretical knowledge, this paper adopts game theory and
game model to analyze the causes of audit failure, and put forward the corresponding countermeasures and analysis. Based on this game
analysis, the original audit conflict model can be extended to establish the game conflict model and analyze the specific factors to study the
formation process and causes of audit failure, and the influence of different participants can be analyzed. Citing game theory research is of
more practical significance, which can enhance external supervision and supervision, and put forward universal preventive countermeasures
combined with specific factors, and help firms and practitioners to be vigilant when facing the same or similar audit business, so as to improve the audit quality and reduce the occurrence of failure.